Noel Whittaker is the author of Wills, Death & Taxes Made Simple and numerous other books on personal finance. Email: [email protected]​

It’s been chaos in the markets — more like a Netflix thriller than a finance report. One day it’s panic, the next euphoria, then straight back to fear. Headlines screamed meltdown, bloodbath, and $9 trillion wiped off the boards. One of the sharpest plunges in history was followed by a record-breaking surge — only to be flattened again by yet another slump. Volatility is back with a vengeance, and investors are gripping their seats.

I spent the week giving talks to well-resourced senior citizens on Sydney’s North Shore, reminding them I’ve been investing for 60 years — and that crashes are nothing new.
One of the earliest – and most dramatic – crashes of my investing life came in 1974 when a severe credit squeeze hit the country. Interest rates soared, inflation was rampant, and banks virtually stopped lending. It became almost impossible to get a loan, paralysing the property market and strangling business activity.

Crashes are nothing new. Image Credit: Shutterstock

The next was 1987, when Australia was swept up in the global share market crash known as Black Monday. The All Ordinaries plunged more than 40% in just a few weeks, wiping out years of gains and decimating retirement savings. The index fell from over 2300 to under 1400 almost overnight.

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[DLHM]

Good article! Some of Noel’s articles are a bit above my head, but I understood this one and makes sense.

 

[Kevin. A.]

The truth is that during a financial downturn you only lose if you sell at the time. If you sell when times are good and market is high, then you can profit. My son has been looking at precious metals like silver coins. Precious metals like gold, silver and platinum have remained consistent during financial market volatility. The price of these metals will only increase in value because the world has a finite amount of each metal. As the demand for these precious metals rises (the digital world) the cost of these metals will only increase in the future. If anyone wishes to invest long term, then consider precious metals as a safer long-term option certainly over the interest given by banks. People from most Asian countries have a long-held faith in the precious metals over other investment options. Silver has always been a safe option because of its price costing less than gold or platinum per ounce/ grams. While gold/Platinum will increase faster than silver. However, silver is a better option for those wishing to invest small amounts when they can. Keep your investment coins or ingots in a safe or bank vault for security.